Investing.com – The pound extended losses against the U.S. dollar on Monday, falling to a fresh daily low, as concerns over sovereign debt contagion in the euro zone continued to weigh heavily on the currency.
GBP/USD hit 1.5656 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.5691, shedding 0.49%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
Later in the day, euro zone finance ministers were set to meet under pressure to increase the size of the EUR750 billion bailout fund, in order to stem the debt crisis spreading through the shared currency bloc.
An International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.37% to hit 0.8474.
Elsewhere, in an interview with CBS's "60 Minutes" aired Sunday, Federal Reserve Chairman Ben Bernanke said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
GBP/USD hit 1.5656 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.5691, shedding 0.49%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
Later in the day, euro zone finance ministers were set to meet under pressure to increase the size of the EUR750 billion bailout fund, in order to stem the debt crisis spreading through the shared currency bloc.
An International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.37% to hit 0.8474.
Elsewhere, in an interview with CBS's "60 Minutes" aired Sunday, Federal Reserve Chairman Ben Bernanke said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.